We present an exactly solvable quantum eld theory which allows rearrangement collisions. We solve the model in the relevant sectors and demonstrate the orthonormality and completeness of the solutions, and construct the S-matrix. In the light of the exact solutions constructed, we discuss various issues and assumptions in quantum scattering theory, including the isometry of the M oller wave matrix, the normalization and completeness of asymptotic states, and the non-orthogonality of basis states. We show that these common assertions do not obtain in this model. We suggest a general formalism for scattering theory which overcomes these, and other, shortcomings and limitations of the existing formalisms in the literature.